US Equity Portfolio Description & Information //

The FormulaFolios US Equity Portfolio seeks to achieve long-term capital appreciation by investing primarily in domestic equity securities of various market capitalizations, with the ability to take temporary defensive positions in cash or cash equivalents in response to adverse market, economic, political, or other conditions. Under normal market conditions, the Portfolio pursues its objective by investing at least 80% of its net assets (including any borrowings for investment purposes) in equity securities of companies based in the United States.

The Portfolio uses a proprietary quantitative three factor model (fundamental, technical, and macro-economic) designed to select up to 50 stocks from the Russell 3000 Index. The Portfolio will typically hold 40-50 individual US equities and the target market capitalization per holding is $5 billion or greater. While the Portfolio primarily invests its assets in the securities of large capitalization companies, the Portfolio may also invest in equity securities of small and mid-cap companies.

Investments in foreign securities could subject the Fund and Portfolio to greater risks including, currency fluctuation, economic conditions, and different governmental and accounting standards. In addition to the risks generally associated with investing in securities of foreign companies, countries with emerging markets also may have relatively unstable governments, social and legal systems that do not protect shareholders, economies based on only a few industries, and securities markets that trade a small number of issues. Adverse changes in currency exchange rates may erode or reverse any potential gains from the Fund and Portfolio’s investments. Non-diversification risk may result in the Fund and Portfolio being more vulnerable to events affecting a single issuer.

The Fund and Portfolio will use model-based strategies that, while historically effective, may not be successful on an ongoing basis or could contain unknown errors. In addition, the data used in models may be inaccurate.

The Portfolio is an Investment vehicle for variable annuity contracts and may be subject to fees or expenses that are typically charged by these contracts. Please review the insurance contract prospectus for further description of these fees and expenses. This product is available as a sub-account investment to a variable life insurance policy only and is not offered directly to the general public.

Investors should carefully consider the investment objectives, risks, charges and expenses of the FormulaFolios US Equity Fund and FormulaFolios US Equity Portfolio. This and other important information about the Fund and Portfolio are contained in the prospectus, which can be obtained on this website. The prospectus should be read carefully before investing. The FormulaFolios US Equity Fund and Portfolio are distributed by Northern Lights Distributors, LLC, Member FINRA/SIPC. FormulaFolio Investments, LLC is not affiliated with Northern Lights Distributors, LLC.

The S&P 500 is an unmanaged, capitalization-weighted index. Performance figures assume reinvestment of capital gains, dividends, but do not include any fees or expenses. It is not possible to invest directly in the S&P 500.

The Russell 3000 Growth Index measures performance of the broad growth segment of the U.S. equity universe. The Russell 3000 Value Index measures performance of the broad value segment of the U.S. equity universe. These indices are respectively subsets of the Russell 3000 Index. Both are unmanaged indices.